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Acxiom study ‘revs up' marketing auto insurance carriers | Business

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Acxiom study ‘revs up' marketing auto insurance carriers
Business
Acxiom study ‘revs up' marketing auto insurance carriers

 

Cost-savings message, mass media campaigns not enough to sustain growth

LITTLE ROCK, Ark.--(BUSINESS WIRE)-- Words like "save money" and "low cost" have long held the attention of auto insurance buyers, but a new study by Acxiom® Corporation (Nasdaq: ACXM), a recognized leader in marketing services and technology, reveals that, in order to drive conversion, insurance carriers need to substantially transform marketing practices. The study suggests that auto insurers should incorporate personalized and coordinated messaging via new, emerging media beyond traditional mass advertising.

Research from the study, "Auto Insurance Carriers Need New Path to Growth," finds that the market is saturated with a savings message — it's no longer differentiating and consumers feel they've already maximized savings. Additionally, although some broadcast tactics such as TV continue to influence auto insurance shoppers, Internet ads, email and social media are catching up. Word-of-mouth retains strong influence, now affecting consumers on Facebook and Twitter, according to the study.

"Auto insurance buyers are no exception when it comes to saving money, but this message is running out of gas," said Clark Wooten, vice president and market group leader for Acxiom's Insurance and Investment Services Group. "Now more than ever, auto insurers must extract valuable insight from customer data to deliver personalized messaging and maximize interaction at every customer touch point."

More key findings from the study include:

  • Carriers promoting savings are motivating customers to shop for a better price, but more than half of all shoppers indicate that potential savings were not great enough or just not worth the effort to change.
  • Significant leakage in the online shopping process occurs as four of 10 consumers abandoned shopping after getting quotes. A significant number of potential customers are lost without having engaged with anything but a calculator.
  • Despite all the current attention on Internet access to information and consumers socializing digitally, the insurance agent is still a respected resource to auto insurance customers with an ability to influence some groups on their choice of carrier and additional coverage.

Research from the study, which was conducted in June 2011, included responses from 2,449 respondents representing a sample of U.S. consumers age 18+ who currently have auto insurance. The survey addressed a wide range of questions regarding attitudes and behaviors pertaining to how consumers perceive auto insurance carriers and how they approach the shopping process.

For a copy of Acxiom's latest study, please click here or call 1-888-3ACXIOM.

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